Railway investments ‘must for Turkey, Iran’

Railway investments ‘must for Turkey, Iran’

ISTANBUL

Turkey and Iran need to make railway investments to boost their trade links in line with the latest deal, says the head of a local transportation association. DHA photo

Turkey and Iran should invest in railways to meet trade targets, head of the Association of International Forwarding and Logistics Services Providers (UTİKAD) Turgut Erkeskin has said in reference to a new trade agreement between the two countries.

The latest preferential trade agreement between Turkey and Iran are useful for business circles from both countries, but needs to be supported with railway investments to be able to reach trade targets, as Turkey and Iran have recently had problems in land transportation, said Erkeskin.

“Turkey and Iran should develop a block railway transportation line so as to reach their shared economic targets,” said Erkeskin.

The recent truck crisis between Turkey and Iran has mostly been resolved by a temporary suspension on sealing Turkish trucks’ gas tanks at the Iranian border, and Turkey now expects a permanent resolution, said Customs Minister Nurettin Canikli Dec. 13, 2014.

“It now appears that the truck problem with Iran has been resolved to a large extent. Our expectation is to see a permanent resolution to this problem,” he said.

The preferential trade agreement, which was signed last year between Iran and Turkey, went into effect on Jan. 1, 2015. According to the deal, 125 items of Iranian goods and 140 items of Turkish goods will be traded based on preferential tariffs.